Vulnerable households at risk: Central and eastern European countries struggle to finalise national social climate plans

With just weeks to go before the European Commission’s deadline for national social climate plan submissions, a new analysis by E3G and Bankwatch reveals alarmingly uneven progress across central and eastern Europe. Examining the state of play in eight EU Member States, the report highlights persistent transparency gaps, weak stakeholder engagement, and protracted delays.

The report “Climbing Together: Making the Social Climate Fund Work for Those Who Need It Most”, written in cooperation with E3G and supported by CEE Bankwatch member organisations, evaluates the readiness of draft national Social Climate Plans across eight EU Member States. It highlights promising practices, identifies critical gaps, and warns of the risks in delivering on the Social Climate Fund’s goals.

The analysis provides recommendations for national authorities, EU institutions, and civil society organisations to support the development of more equitable, transparent, and impactful plans—particularly in Central and Eastern Europe, where the stakes are highest.

Key findings of the report include:

• With only a few weeks before the submission deadline, just three CEE countries have shared draft plans with stakeholders.
• Stakeholder engagement and public transparency remain inconsistent; in some cases, consultation has been minimal.
• Definitions of energy and transport poverty are still missing or unclear in several countries, hindering the ability to effectively target support.
• Support for energy communities and decentralised solutions is still limited, despite their affordability and proven potential for social empowerment.

The document presents nine policy recommendations to address the shortfalls.

1. Institutionalise structured and meaningful stakeholder engagement 
2. Establish clear monitoring and oversight mechanisms  
3. Adopt clear definitions of energy and transport poverty 
4. Close data gaps and improve data accessibility 
5. Strengthen local and regional capacities to ensure the Social Climate Fund benefits the right beneficiaries   
6. Integrate support for energy communities and decentralised energy production 
7. Balance direct income support with structural investments 
8. Prioritise the swift adoption of national social climate plans while communicating transparently about potential ETS2 delays   
9. Supplement the Social Climate Fund with additional ETS2 revenues 

Read the full report ‘Climbing together: Is the Social Climate Fund working for those who need it most?’